tv Headline News RT October 1, 2013 12:00pm-12:30pm EDT
u.s. government shuts down following an unresolved standoff between democrats and republicans over the new budget work is set to lose millions of dollars from their wage packets . consider pulling out of the european human rights convention with senior politicians claiming rights rulings are standing in the way of justice. and israel's prime minister uses his meeting with barack obama to warn against iran's charm offensive after washington and tehran broke decades of silence for the phone call last week our top stories this hour.
live from austria said here in moscow where it's just turned eight pm this is r.t. the us government has partially ground to a halt for the first time in seventeen years squabbling democrats and republicans couldn't find a way to agree a new budget clashing over. the current administration's high profile reform of the health system now the essential elements of the government such as the military and national security will continue to operate but eight hundred thousand workers have been put on unpaid leave and over a million are being forced to work despite their pay being delayed experts estimate the political stalemate could cost the economy up to fifty five billion dollars now that is as much the effects of hurricane katrina in two thousand and five services such as the courts transport and the mail will continue to work but they expect to experience difficulties and delays more now from auntie's political commentator sam sachs. parks closed around around the nation in part in particular here in d.c.
museums closed and all these things are going to have compounded economic effects it's not just people with lost wages when people aren't getting paid they can't spend money businesses start cutting back so the longer this lasts the more and more the economic effects pile up on each other and we haven't even talked about the debt limit which is in two weeks the government shut budge shut down is a known quantity we've been here before we know the economic price tag on that government shutdown that's an unknown quantity and economists fear it could be billions more and immediately plunge the world economy into a recession again a government shutdown look we're talking about money coming out of working people's paychecks that's that's a form of austerity if we get to the debt limit that's an even harsher form of austerity because then the government's going to have to prioritize its payments and only pay certain debt obligations and other obligations would force even more spending but it's important to keep this in perspective this is the seventh budget showdown between president obama and congressional republicans and each of the last six austerity hawks in congress have one we've had austerity spending resolutions
for two and a half years now in this if there's a resolution of this government shutdown in the next few days it's going to be another austerity spending plan republicans have already won on the spending numbers here democrats have caved the only issue here is obamacare so yes there's going to be more austerity coming and we're starting to see the same effect here in the united states that you see in the european union with working people's wages going down public services being cut suicide rates spiking and ultimately deficits getting even worse. well the government is risk shutdown a number of times in recent years but lawmakers have always managed to avoid it by the skin of their teeth let's look back at the close it's calls in two thousand and eleven government closure was averted just one hour before the deadline after a painful legislative standoff a budget deal was finally agreed that the ceiling was another nerve racking issue in the summer of two thousand and eleven it made nervous markets in america and around the world tumble but the sky didn't fall in as it was agreed upon a whole two days before the time was up and it's been seventeen years since the
last time the government partially ceased operating but it's actually the eighteenth time the u.s. has taken a so-called spending gap in one thousand nine hundred seven the government was shut down three times in as many months on the base market strategist mike ingram told us america keep stepping on the same rakes makes them look like idiots quite frankly. i think previously details. of the government just about managed to avoid a shutdown two and a half years ago and at that point in time credit agency standard poor's downgraded u.s. debt from its aaa status and one of the reasons they gave was they said all that you know that this country is becoming ungovernable there's no visibility on what your fiscal policy is which politicians are just playing with fire year after year and here we are again now two thousand and thirteen in the same situation and i would have to say that even once a deal is finally thrashed out this time around and one must hope that that will
actually happen we're probably going to be in the same sort of situation next year well the british prime minister david cameron meanwhile believes the u.s. shutdown poses a risk to the world economy and it's get some more european reaction now from professor of economics rodney shakespeare professor is david cameron right is that the risk for the entire global economy or is it really more of a risk for europe. no he's right the present system relies on a build up of debt a compound interest debt which is not put into the real economy and the spreading of the road economy and so the whole system since august two thousand and seven is in fact in a fragile state so anything particular now or in the immediate future can cause the next downward lurch in the overall decline of the western financial system so david cameron is right on this point but some say this is an overreaction because this
all could be sorted out in a couple of days went to become more serious if this crisis continues what for another week or a couple of weeks. well at the heart of it is the fact that the democrats and republicans are the two sides of the same coin of the american political system which is governed by corrupt finance corrupt zionism a corrupt military industrial complex and as a result they won't go to the heart of the matter which is that americans military spending is forty percent of the world total with the un declared amounts it's nearly fifty percent that seven times larger than china and eleven times larger than russia the american military spending should be brought back into line with other countries that can cut to one tenth of what it is at present but they're not going to do that by going to launch instead a vicious attack on america's paw and tell us then in what way obviously those federal workers nearly up to a million will be without money at the moment economically affecting them but how
will it then affect others who want necessarily employed by the federal government . well it depends whether in fact they make a deal but the underlying point is just a made by the previous one of your previous speakers which is that the debt will still be building more and more until you get a point at which confidence collapses and then not only does the you. yes economy go down the tubes but probably that will bring down the european economy as well this is early days in this situation but at some stage there comes a serious crack and it may come sooner rather than later and so much perception is and confidence just how much damage could this do for the u.s. and not just politically but economically. i don't think it's a question of perception once any country gets its debt up to say shall we say one hundred percent of g.d.p. then the debt has become an repayable and it becomes only
a question of time before the markets wake up to that reality the u.s.a.'s problem really is a totally out of control military spending and an arrogant attitude towards the rest of the world so yes it addresses that issue right so when you talk about it markets waking up to the reality you talk about investors being spooked and going elsewhere. yes you're talking about stock markets bond markets realities like the great extent of the derivatives market the whole thing is thoroughly is secure some point it's going to be an up or down with what is a long ongoing process of a fifteen or twenty year decline right down to the bottom but yet so you know the same going to precipitate it but professor some people saying the u.s. economy of course i mean the cagers of their u.s. economy has shown signs of recovery recently and pretty good sign please please the
true unemployment shadows that dot com is twenty three percent and you double that for young people eighteen to twenty five there are fifteen million people on food stamps and the american middle class really incomes have been gone backwards for twenty five years and america has exported somewhere like four or five million jobs permanently and each job you export means that three are not going to be in your economy the american economy is smashing down hill any science at the moment are there are told as a result of pushing out of money which essentially going into house prices and stock market prices has nothing to do with the real economy of ordinary people and their jobs and their real incomes. economics professor rodney shakespeare live in london thank you very much. indeed for your perspective on this thanks. well for a view from moscow on the e.u.'s stalemate that's across live now to the dawson
he's chief economist at investment house systemin thank you very much indeed for being with us now is the fragility of much of the global economy even more pronounced now at the current showdown the what should say the current shutdown we're seeing in the us. or i would agree with this statement actually you for the shutdown last summer for as long as a few weeks this will definitely affect first of all this will put to the test for us. the u.s. recovery which is very strong to show because we've launched a reaction for example in federal reserve and the fact that there will in those still want to diffusion significant do and this is the first point of the second point definitely the whole world will soften because of strong good strong deaconess to the united states through financial markets and in the case of such important countries like china through trade flows i don't even buy out that fact
that. most of us consumers. to buy last longer than the u.s. consumers to buy it because maybe budgetary walkers solve that that's actually a straight forward effect of what has just happened. will will affect the capacity of chinese produces to produce and export and this will slow down their growth in the second largest economy which and the shore not on the inside china but also outside the country so yes the whole world will be affected round to talking about that for talking about that and we'll talk about that global impact but you'll highlighting to us washington of course is the biggest contributor to the international monetary fund so how will the current crisis affect be the trustworthiness of. in organization if matters do get worse that. the fed ex unit its trots trustworthiness off their i.m.f.
which may soften up i suppose that so they will in this off the i.m.f. to support different contras may saw far for example or i.m.f. may not be as we learn from this point from the smallman to support ukraine losses maybe from their less favorable trades with with russia so that maybe that maybe in the ship because these columns the less on the economic side and more from the political demands and before we address these issues yes the willingness of the t.v. to self the i.m.f. may be affected i don't think that this will affect the trust with this ok let alone the fact that yes i cannot call the i.m.f. their most trust what they have been is asia right or what about the brics countries though the likes of china brazil and indeed russia where you are winners or losers in this situation. i would say in the short term yes china is is
a very important trade partner for the united states if growth in the united states slows dolls' which is the likeliest outcome of the. government shutdown but it's only a question know what will be the amount of this loss again to close living through financial markets and through trade the trade channels russia lessening through trade channels bought that we will be out affected through resource crisis the problem is that if the united states do not perform as if it was expecting to see if china slows down thought that it is not so much about you it is for oil prices to fall higher. and that is a significant reason which means we may see now in current flows that they will go lower if they go a long way we don't know if the lower self but accountable is all that's the short term effect in the longer term in the long.
director at the american jobs alliance now we're still waiting for president obama to speak on the first day of the shutdown i believe is it going to be speaking about ten minutes from now so what should he be saying what does he have to say to resolve this crisis. well he should be speaking directly to the house republicans who for the last two years have been complaining about the degree of uncertainty that the job creators face because of obamacare or increased regulation or this or that so he should tell them that this government shutdown and brinksmanship creates another level of uncertainty. peers and businesses hate and politically this but what's it going to do for the republicans this is going to win in the long term over this what will the republicans actually suffer here right here. well that's that is the question we ask about who's going to be affected and how does this affect unemployment people are really wondering how is this going to affect
unemployment in the house of representatives will some people find themselves unemployed next year and that is a very good question the polling doesn't seem to favor people average everyday people they go to work and they can't choose not to go to work because they don't happen to like the color tie that the boss is wearing they still have to show up so they kind of expect that same behavior from their elected representatives and let's talk about those people who want to go to work clearly those federal workers all table to go to work what about others though in society how could they be affected by this if it continues this crisis. right well you see let's say there's a government office at the corner of seventh street and main street and ninety percent of those people don't show to don't show up to work so the lunch joint across the street is going to see a little decrease in business the waitresses aren't going to be getting the tips they are used to getting now on a macro level it probably won't affect too much because those workers who aren't
buying lunch are probably buying groceries at home to make lunch for their kids so they'll be more business of the grocery store while less at the. at the corner deli but i just heard a story this morning of a family that was planning a family reunion at yellowstone park and everybody was flying in from different parts of the country they were going to rent an r.v. and spend the weekend yellowstone yellowstone close now so those rural communities around the national parks are going to be hit pretty hard if this continues to economically for the individual as those debts will start to stack up what they won't be able to pay that mortgages or whatever and they may have to obviously relying on the savings this may not be a short time cross at the moment but that could have a long time impact for them could it not. it certainly couldn't and as i said earlier uncertainty business likes a certain climate of certainty they don't want curveballs thrown at them you can't plan long term uncertainty if there's a crisis every two months if you don't know if the government's going to be open or
not are they going to be ordering paper clips in my business or not and if you mention mortgages if you're going to go in for an f.h.a. mortgage that's not being processed right now so there are some carpenters that could well be laid off because those houses aren't being built so employment could read the be affected in the long term you know that from the american jobs alliance clearly this is something that you would expect it to happen and it's something that people are going to have to perhaps come to grips with it's going to affect the job market pretty badly that when it. well if it continues it very well could one thing that i'm concerned about the american jobs alliance the concerned about is president obama is still planning to go to bali at the end of the week where he's going to give away more jobs through the trans-pacific partnership. summit so i wish he cancel that that would be a good outcome of the shutdown it can actually save jobs and just briefly talk about the the outcome of the shutdown just how long could this shop continue for
many say this is just an overreaction it could be two or three days it could all be result but could this go one of the one of the shutdowns last for something like three weeks in the past so could it get to that stage you think the political deadlock. we're talking to all of the people i know on capitol hill no one knows it could go that long this is it seems that no one's really talking about how to resolve this there is the talk about uncertainty there is a large degree of uncertainty as to how long this shutdown is going to last and the longer it goes the more painful it will be for the economy because it's great to talk to you thank you very much indeed cut as it is from the american jobs alliance live from new york thank you. thank you. much more government must now shut down until congress funds it again. britain's slow drift away from the rest of europe continues prime minister david cameron said the u.k.
may well withdraw from the european convention on human rights rulings such as allowing foreign criminals to remain in the country indefinitely as long irritated the government and public. explains. british home secretary theresa may told the conservative party conference that the current immigration system in the u.k. is like a never ending game of snakes and ladders and that quitting the european convention for human rights might be a route that the government chooses to go down david cameron has already endorsed that option at the opening of the tory party conference now the reason they are so worried about this is that at the moment suspected foreign criminals well they have seventeen different routes to appeal if they are meant to be deported under the proposed plans the home office would first deport suspected foreign criminals and then hear their appeals often they've been deported the winners foreign criminals and immigration lawyers while the loses all the victims of these crimes to the
public where there is no risk of serious and irreversible harm we should deport foreign criminals first and hear their appeals later now the conservatives view is that the european convention for human rights simply prevents them from dealing with famous cases like that of radical hate preacher abu qatada who famously avoided extradition from the u.k. for over a decade because his lawyers argued that it was against his human rights to return to his native jordan where he could face torture there now that was an extremely embarrassing case for the u.k. government and gives you an indication of why they want to tackle the issue but this is a country already that hasn't been immune to accusations of human rights abuses itself only recently the u.k. government was criticized for detaining glenda greenwald partner david miranda at heathrow airport glenn greenwald is of course the guardian journalist who uncovered much of the n.s.a. scandal and his partner was held by police that he through our ports and most of
his documents all of his documents was seized and human rights watch called it a shocking act that was aimed at punishing or intimidating journalists and in terms of the reaction. see the conservatives latest proposals well they're already there is highlighting that these plans courageous may well be illegal under current laws and that ultimately they could be the first steps towards the u.k. government simply ignoring the human rights of people as and when it suits them israel's prime minister has called iran's new president hassan rouhani a wolf in sheep's clothing but netanyahu has been talking at the u.n. general assembly and he's talking right now where we bring you live pictures of that meeting there in new york he was urging and is indeed urging the u.s. president barack obama not to fall for what he called iran's sweet talk and he's been spurred into action by the fore in relations between washington and tehran after the leaders of both nations finally talk directly to each other and when
you're talking to the u.n. general assembly in artie's marina portnoy has more. just seven days ago iranian leader hassan rouhani delivered his debut address at the u.n. g.a. proclaiming that his government was ready to resolve any and all concerns about his country's nuclear program even promising more transparency and engagement with the united states during a meeting with u.s. president barack obama at the white house on monday israel's prime minister insisted that tehran offer immediate concessions by suspending sensitive nuclear projects or else face even greater international pressure now obama shorting netanyahu that all options including military options are on the table when it comes to protecting u.s. interests in the middle east or hope is that we can resolve this diplomatically bush as president said before i would prefer that we take no options off the table
including military options while televisa of has been ringing alarm bells over tehran's allegedly nuclear program it is simultaneously even ignoring calls from iran syria and other countries to join the nuclear nonproliferation treaty that's keeping the middle east free from weapons of mass destruction israel has also not confirmed or denied if it has its own nuclear arsenal reporting from new york. arching. time now for some other international news making headlines this international inspectors from the netherlands of crossed into syria to oversee the destruction of the country's chemical weapons stockpiles the group of twenty came from neighboring lebanon to find and dismantle about a thousand tons of toxic materials this comes after another group of u.n. experts completed an investigation into alleged gas attacks on monday u.n. security council approved the probe last week as part of an agreement hammered out between moscow and washington following an attack this august. or
senior members of greece's far right wing golden dawn party have appeared in court on charges of being linked to a criminal group the stabbing of anti-racism activist almost two weeks ago sparked public outrage at the government's failure to contain violence by golden dawn supporters and they too numerous attacks on immigrants the unrest has pushed the government into preparing a bill which would outlaw racist hate speech. but also not well the face of the suicide bomber killed five police officers and wounded more than seven others in iraq's northern city of tikrit came a day after a series of blasts in and around baghdad killed at least fifty five people and al qaeda linked group claimed responsibility and violence in iraq has reached its highest level since two thousand and eight. so that brings up to date for the moment the news team with morphy in just over half an hour from now in the meantime x. kaiser and stacy her but the bankers in the latest edition of the kaiser report
to the kaiser report imax kaiser a new study has revealed that the negative side effect warnings can increase sales the study found that consumers tend to buy more of a product that advertisers potentially harmful side effects like weight gain and heart disease then products that do not. yeah it seems the warnings have the paradoxical effect of creating trust in the consumer pig this could help explain why david cameron has brought forward by three months the conservative party ponzi scheme marketed under the name help to buy the ponzi scheme comes with economic health warnings from mervyn king bank of england the i.m.f. and from economists around the world that the program will destroy the u.k.
economy despite the warning greater fools are lining up to put just five percent down on a property worth up to six hundred thousand pounds so that they the taxpayer chump will put down the remaining fifteen percent pop up of the bubbly or is a perhaps a bottle of maggie maggie stacey what's going to max it's called our maggie it's a beer being sold at the conservative party conference they're tearing the return of the housing bubble pm triggers new house sales spree two hundred thousand get chance to buy as cameron starts twelve billion pound mortgage guarantee scheme next week prime minister yesterday announced help to buy scheme will start from next week three months ahead of schedule quote i will not stand by while hardworking people struggle to get a mortgage but critics say dangerous scheme will inflate the market well there's a couple things here one is as.